We investigate the impact of government debt on corporate financing decisions. We document a negative relation between government debt and corporate leverage using data on 40 countries between 1990 and 2014. This negative relation holds only for government debt that is financed domestically and...

We empirically investigate the impact of government debt on corporate financing decisions in an international setting. We document a negative relation between government debt and corporate leverage using data on 40 countries between 1990-2014. This negative relation is stronger for government...

We investigate the impact of government debt on corporate financing decisions. We document a negative relation between government debt and corporate leverage using data on 40 countries between 1990 and 2014. This negative relation holds only for government debt that is financed domestically and...

Coval and Moskowitz (1999) report that proximity influences investment. We extend the measurement of proximity beyond distance and report that air travel reduces local investment bias. This result is confi rmed using the initiation of connecting flights through recently opened air hubs since...